Credit Suisse to Provide Winterthur with $1.1 Billion

June 20, 2002

Credit Suisse Group (CSG) announced that it will strengthen its Winterthur insurance operation with the injection of approximately Sw.Frs. 1.7 billion ($1.1 billion), exceeding most analysts expectations.

The capital increase will come from two sources – a direct injection of Sw.Frs. 600 million ($390 million), and a£500 million ($745 million) in proceeds from a “perpetual bond” issue that has already been placed in the Euro market.

The new capital will substantially increase Winterthur’s solvency margins, which have fallen from increased claims, the decline in value of equity investments, and increased underwriting demands.

In a report from Reuters News Agency CSG indicated that it thought the future prospects in both the life and non-life insurance sectors continued to be attractive, and that it has no plans to sell its insurance operations.

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